Economists say Moody's upgrade of Greek rating paves way for 10-year bond issue

Rating agency Moody's announced on Friday it has upgraded Greece's sovereign credit rating by two notches to "B1" with a stable outlook, from the "B3" rating with a positive outlook it had granted Greece just over a year earlier.

Economists expected this upgrade to assist Greece in its next foray in the markets, probably with a 10-year bond.

In a statement, Moody's explained that its upgrade reflected the strengthening of Greece's economy thanks to the implementation of reforms, the likelihood of a sustained strong fiscal performance, and the enhancement of public debt sustainability.

Greek bond yields in the secondary market have already dropped to a decade-low, with the 10-year note's rate standing at 3.65 percent on Friday.

"Greece benefits from the fact it has no open fronts at this stage and the international juncture is favorable, with the Italian...